CARBON
TRADING,
A
potential opportunity & visible source of sustainable finance for
investment
Santosh Bastola
20211614
p.u. Reg. number
A
Summer Project Report Submitted To
Liberty Collage
Submitted For The Degree Of
Bachelor Of Business Administration(B.B.A)
Kathmandu
Kartik, 2014
DECLARATION
This summer project Report entitled
"CARBON TRADING, GHG AND NEPALESE ENVIRONMENT" which is submitted by
me in partial fullfilment of the requirement for the award of BBA degree of
pokhara University comprises only my original work and due acomplishsment have
been made to materials used in the report.
signature
...................................
Santosh Bastola
Date:
BONAFIDE
CERTIFICATE
I like to certified that this project report "CARBON TRADING, GHG
AND NEPLEASE ENVIRONMENT" is the bonafide work of Santosh Bastola who
carried out the summer project work under my supervision. This report is
forwarded for examination.
Signature Signature
........................... ....................................
Name of
the Supervisor Name of the programme Director
Signature
...........................
Name of
the External Examiner
Date:
ACKNOWLEDGEMENTS
I express my
sincere thanks to my project guided, Mr. Sanjay Dhungana, BOD of Liberty
Collage for guiding me right from the inception till the successful completion
of the Project. I sincerely acknowledge him/her for extending their valuable
guidance, support for literature, critical report of project and the report and
above all the morale support he/she /they had provided to me with all stages of
this project.
I would also like
to thank the supporting staff ....................................dept, for their
help and cooperation through our project.
Santosh Bastola
DECLARATION i
BONAFIDE CERTIFICATE ii
ACKNOWLEDGEMENTS iii
EXECUTIVE SUMMARY
(about 300 words) iv
CHAPTER
I INTRODUCTION
Background
Information
Objectives
of the Project Work
Review of
Related Studies (about 1000 words) Research Methods
CHAPTER II
DATA ANALYSIS AND MAJOR FINDINGS
Data
Presentation and Analysis
Major
Findings and Discussion
CHAPTER
III SUMMARY AND CONCLUSIONS
Summary
Conclusion
References
Appendices
List Of Acronyms
DFRS Department Of Forest Research and Survey
EIA Environment Impact Assessment
FD Forest Degradation
FRA Forest Resource Assessment
FY Fiscal Year
GHG Green House Gas
GoN Government of Nepal
ICIMOD International Center For Integrated
Mountain Development
IPCC Intergovernmental Panel on climate
change
MoFSC Ministry of Forest ans
CHAPTER-I
INTRODUCTION
Global temperature is increasing day by day
creating various environmental problems and issues like global warming, acid
rain, Ozone layer depletion. Carbon is the common denominator in all polluting
gases that causes global warming. This gas is responsible for half of the
atmospheric gas retained by trace gases.
So this global warming has created a new
form of commerce: The Carbon Trade. this
new economic activity involves buying and selling of "Environmental
services", including the removal of green house gases from the atmosphere,
which are identified and purchased by eco-consulting firm and then sold to
individual or corporate clients to "offset" their polluting
emissions. Growing concern about the biosphere and increasing awareness of the
need for pollution control have given rise to the concept of ":Carbon
Credit": An exchange of credit between nations designed to reduce emission
of co2. is called carbon trading. The carbon trade allows country
that have high carbon emission to purchase the right to release more co2
in the atmosphere from countries that have lower carbon emission.s
There
are both natural and human sources of carbon dioxide emissions. Natural sources
include decomposition, ocean release and respiration. Human sources come from
activities like cement production, deforestation as well as the burning of
fossil fuels like coal, oil and natural gas.
Due
to human activities, the atmospheric concentration of carbon dioxide has been
rising extensively since the Industrial Revolution and has now reached
dangerous levels not seen in the last 3 million years. Human sources of
carbon dioxide emissions are much smaller than natural emissions but they have
upset the natural balance that existed for many thousands of years before the
influence of humans.
This
is because natural sinks remove around the same quantity of carbon dioxide from
the atmosphere than are produced by natural sources. This had kept carbon
dioxide levels balanced and in a safe range. But human sources of emissions
have upset the natural balance by adding extra carbon dioxide to the atmosphere
without removing any.
Since
the Industrial Revolution, human sources of carbon dioxide emissions have been
growing. Human activities such as the burning of oil, coal and gas, as well as
deforestation are the primary cause of the increased carbon dioxide
concentrations in the atmosphere
87
percent of all human-produced carbon dioxide emissions come from the burning of
fossil fuels like coal, natural gas and oil. The remainder results from the
clearing of forests and other land use changes (9%), as well as some industrial
processes such as cement manufacturing (4%).
The
largest human source of carbon dioxide emissions is from the combustion of
fossil fuels. This produces 87% of human carbon dioxide emissions. Burning
these fuels releases energy which is most commonly turned into heat,
electricity or power for transportation. Some examples of where they are used
are in power plants, cars, planes and industrial facilities. In 2011, fossil
fuel use created 33.2 billion tonnes of carbon dioxide emissions worldwide. The
3 types of fossil fuels that are used the most are coal, natural gas and oil. Coal
is responsible for 43% of carbon dioxide emissions from fuel combustion, 36% is
produced by oil and 20% from natural gas. Coal is the most carbon intensive
fossil fuel. For every tonne of coal burned, approximately 2.5 tonnes of CO2e are produced.6 Of
all the different types of fossil fuels, coal produces the most carbon dioxide.
Electricity
and heat generation is the economic sector that produces the largest amount of
man-made carbon dioxide emissions. This sector produced 41% of fossil fuel
related carbon dioxide emissions.
The
transportation sector is the second largest source of anthropogenic carbon
dioxide emissions. Transporting goods and people around the world produced 22%
of fossil fuel related carbon dioxide emissions. Road transport accounts for
72% of this sector's carbon dioxide emissions. Marine shipping produces 14% of
all transport carbon dioxide emissions.
Global
aviation accounts for 11% of all transport carbon dioxide emissions.
International flights create about 62% of these emissions with domestic flights
representing the remaining 38%.
The
industrial sector is the third largest source of man-made carbon dioxide
emissions. This sector produced 20% of fossil fuel related carbon dioxide
emissions.The industrial sector consists of manufacturing, construction,
mining, and agriculture. Manufacturing is the largest of the 4 and can be
broken down into 5 main categories: paper, food, petroleum refineries,
chemicals, and metal/mineral products. These categories account for the vast
majority of the fossil fuel use and CO2 emissions by this sector.
Deforestation
has been responsible for the great majority of these emissions. Deforestation
is the permanent removal of standing forests and is the most important type of
land use change because its impact on greenhouse gas emissions. Forests in many
areas have been cleared for timber or burned for conversion to farms and
pastures. When forested land is cleared, large quantities of greenhouse gases
are released and this ends up increasing carbon dioxide levels in three
different ways.
Trees
act as a carbon sink. They remove carbon dioxide from the atmosphere via
photosynthesis. When forests are cleared to create farms or pastures, trees are
cut down and either burnt or left to rot, which adds carbon dioxide to the
atmosphere.
Since
deforestation reduces the amount of trees, this also reduces how much carbon
dioxide can be removed by the Earth's forests. When deforestation is done to
create new agricultural land, the crops that replace the trees also act as a
carbon sink, but they are not as effective as forests. When trees are cut for
lumber the wood is kept which locks the carbon in it but the carbon sink provided
by forests is reduced because of the loss of trees.
Apart
from being created by human activities, carbon dioxide is also released into
the atmosphere by natural processes. The Earth's oceans, soil, plants, animals
and volcanoes are all natural sources of carbon dioxide emissions.
42.84
percent of all naturally produced carbon dioxide emissions come from
ocean-atmosphere exchange. Other important natural sources include plant and
animal respiration (28.56%) as well as soil respiration and decomposition
(28.56%). A minor amount is also created by volcanic eruptions (0.03%).
The
largest natural source of carbon dioxide emissions is from ocean-atmosphere
exchange. This produces 42.84% of natural carbon dioxide emissions. The oceans
contain dissolved carbon dioxide, which is released into the air at the sea
surface. Annually this process creates about 330 billion tonnes of carbon
dioxide emissions.
An
important natural source of carbon dioxide is plant and animal respiration,
which accounts for 28.56% of natural emissions. Another important natural
source of carbon dioxide is soil respiration and decomposition, which accounts
for 28.56% of natural emissions. A minor amount carbon dioxide is created by
volcanic eruptions, which accounts for 0.03% of natural emissions.
Nepal
has experienced an average maximun annual temperature increase of 0.060C. This rate of increase is higher in
mountains tha in other regions. Despite having only 0.4 percent of the total
global population and being responsible for only 0.025 percent of total GHG
emissions in the world, Nepal will be affected disproportionately, especially
from increasing atmospheric temperature. Changes in the annual rainfall cycle,
intense rainfall and longer droughts have been observed. The timing and
duration of rainfall is changing. As glacier recede from rapid snow and ice
melting, glacier lakes are melting. The adverse impacts of climate change have
been noticed in agriculture and food security, water resource forests and
biodiversity, health tourism and infrastructures. Climate- induced disasters
and other effects have caused damages and losses to life, property and
livelihood.
Millions
of Nepalese are estimated to be at risk to climate change. In the past 90
years, a glacier in Sagarmatha region has receded 330 m feet vertically.
Because of glacier melting, new glacier lakes have been formed. Although there
will be an increase in river flow until 2030, this is projected to decrease
significantly by the end of this century. The problems arises due to climate
change are increasing over the years.
OBJECTIVES:
GENERAL OBJECTIVES:
The general objectives
of this project work are to find out the possibilities of carbon trading in the
developing countries like Nepal.
SPECIFIC OBJECTIVES:
·
To ascertain the exact income/ Revenue collected from the
carbon trading in nation as a
whole.
·
To suggest the possible techniques, Strategies and
methods to increase the income from carbon trading in Nepal.
·
To develop possible conclusion on Carbon Trade, comparing
with the global scenario.
LITERATURE
REVIEW
Carbon
trade is the buying and selling of carbon credits between nations to reduce
emission of carbon dioxide. it also allows individual companies to sell unused
credits to organizations to emits more carbon dioxide, assuring that the
companies in aggregate, do not exceed the National Cap. one carbon credit is
equivqlent to one metric tons of carbon
dioxide. Carbon credits are then assigned a monetary value, similar to the
commodity market where prices are fixed according to supply and demand.
Countries or companies that emits more carbon dioxide buy right to burn carbon
from countries or companies that reduce carbon in the atmosphere and whose
credits are lower 0than the cap level.
TRENDS IN
INTERNATIONAL CARBON DIOXIDE EMISSION
It is not too long ago that the issue of
whether global warming was occurring at all, and whether humans had anything to
do with the phenomenon was up for debate. in 1988 The World Meteorological
organization (WMO) and The United Nations Environment Programme (UNEP) organized the inter
governmental panel on climate change (IPCC), to study the scientific, political
and economic information surrounding the risks of climate change due to
anthropogenic influences. with the united nations frame work convention on
climate change (UNFCCC), negotiated at the Rio Earth Summit in 1912, the need
to address the problem of climate change with a political response was formally
acknowledged. The convention called on countries to reduce Dangerous green
house gas emission with an acceptance of "common but differentiated
responsibilities " appeared to acknowledge a greater responsibility for
which countries to take action for their unequal cosumption of the world's resources.
KYOTO PROTOCOL
The
kyoto protocol is an international agreement linked to the united nations
framework convention on climate change, which commits its practices by setting
internationally binding emission reduction targets.
Recognizing
that developed countries are principally responsible for the current high
levels of GHG emissions in the atmosphere as a result of more than 150 years of
industrial activity, the protocol places a heavier burden on developed nations
under the principle of "common but differentiated responsibilities."
The
kyoto protocol was adapted in Kyoto, Japan, on 11 Dec 1997 and entered into
force on 16 Feb 2005. The detailed rules for the implementation of the protocol
were adopted at COP7 in Marrakesh, Morocco, in 2001, and are referred to as the
"Marraakesh Accords".
http://unfccc.int/kyoto_protocol/items/2830.php
under the protocol, countries must meet their
targets primarily through national measures. However the protocol also offers
them an additional means to meet their targets by way of three market based
mechanism.
The kyoto mechanisms are:
·
International Emissions Trading
·
Clean Development Mechanism (CDM)
·
Joint Implementation (JI)
These mechanism helps to stimulate green
investment and help parties meet their emission targets in a cost effective
way.
INTERNATIONAL EMISSION TRADING
Emissions trading, as set out in Article 17
of the Kyoto Protocol, allows countries that have emission units to
spare-emissions permitted them but not "used"- to sell this excess
capacity to countries that are over their targets. Thus a new commodity created
in the form of emission reduction or removals.
unfccc.int/kyoto_protocol/mechanisms/emissions_trading/items/2731.php
CLEAN DEVELOPMENT MECHANISM (CDM)
The clean development Mechanism (CDM),
defined in article 12 of the protocol, allows a country with an emission
reduction or emission limitation commitment under the kyoto protocol to
implement an emission reduction project in developing countries. such project
can earn saleable certified emission reduction (CER) credits, each equivalent
to one tonne of co2, which can be counted towards meeting kyoto
targets.
under the CDM we can cut for carbon credit.
Under the UNFCCC, charter any company from the developed world can tie-up with
a company in the developing country that is a signatory to the kyoto protocol.
these companies in developing countries must adopt newer technologies, emitting
lesser gases, and save energy.
It is a first global, environmental
investment and credit scheme of its kind, providing a standardized emissions
offset instrument ,CERs. the mechanism stimulates sustinable development and
emissions reductions while giving industrialized countries some flexibility in
how they meet their emission reduction or limitstions targets.
unfccc.int/kyoto_protocol/mechanisms/items/2718.php
JOINT
IMPLEMENTATION (JI)
The mechanism known as "joint
implementation", defined in article 6 of the kyoto protocol, allows a
country ;with an emission reduction or limitation commitment under the kyoto protocol
to earn emission reduction or emission removal project in another annex B
party, each equivalent to one tonne of co2, which can be counted
towards meeting its kyoto target.
unfccc.int/kyoto_protocol/mechanism/joint_implementation/items/1674.php.
THE RIO- EARTH
SUMMIT-1992
From 3-14 June 1992, Rio De Janerio hosted
the United Nations Conference on Environmental and Development (UNCED). the
focus of this conference was the state of the global environmental and the
relationship between economics, science and the environment in a political
context. The conference concluded with the earth summit, at which leaders of
105 nations gathered to demonstrate their commitment.
CABINATE MEETING
HELD AT KALAPATTHAR
Nepalese ministers hold a cabinet meeting at the
base camp of Mount Everest, highlighting the danger climate change poses to the
Himalayas. The cabinet meeting held at kalapatthar (The base of Mount Everest)
declared climate change as a national agenda and adopted a 10 point
declaration. The meeting was expected to send a message to the internationals
committee that the preservation of the earth from climate change is the
responsibility of all.
www.nepalnews.com
The
National Climate Change Conference held at the bank of magnificent RSSara Lake
in Mugu district of Karnali has concluded with a nine-point declaration.
The
conference organized jointly by Ministry of Science, Technology and Environment
and Karnali Integrated Rural Development and Research Centre (KIRDARC) was
attended by around 200 officials from various government and non-government
organizations and the private sector.
In
the declaration issued on Friday, October 31, 2014, the Rara Climate Change
Conference points out that the least developed countries like Nepal were facing
greater problems due to global warming, a result of activities of industrial
countries with huge economic power.
The
conference further declared that various phase-wise debates and advocacy will
be held to stop and minimize the impact of global warming.
The
conference has decided to hold a debate at Asian level and brief about the
impact of climate change on Nepal’s Himalayas at various forums including UN
and other international conferences participated in by Nepal.
SUSTINABLE
DEVELOPMENT AND CARBON
The links between climate change and
sustainable development are strong. While climate change will know no
boundaries, poor and developing countries, particularly the LDCs, will be among
those most adversely affected and least able to cope with the anticipated
shocks to their social, economic and natural systems. The IPCC projects that by
2080, millions of people will be displaced due to sea-level rise, with
densely-populated and low-lying countries, like many SIDS, facing the greatest
threat from storm surges and rising seas. Internationally Agreed Development
Goals & Climate Change
Internationally
agreed frameworks and goals have set an agenda for integrating climate change
and sustainable development. Agenda 21, which addresses climate change under
its Chapter 9 (Protection of the atmosphere), recognizes, " that
activities that may be undertaken in pursuit of the objectives defined therein
should be coordinated with social and economic development in an integrated
manner, with a view to avoiding adverse impacts on the latter, taking into full
account the legitimate priority needs of developing countries for the
achievement of sustained economic growth and the eradication of poverty."
http://sustainabledevelopment.un.org
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NATIONAL POLICIES
Nepal government
has estimated 93 crore rupees for the climate change management for the fiscal
year 2071/72. To estimate the exact expenses made for the climate change
management in Nepal and to ascertain the net income made from other grant's and
sources during environment conservation, the Government of Nepal has started
the climate change management budget for the first time.
The National Planning Commission
(NPC) and Ministry of Federal Affairs and Local Development have been honoured
with the GSSD Expo 2013 Annual Leadership Award for South-South Cooperation.
Nepal was awarded for its exemplary and innovative work on the “Climate Public
Expenditure and Institutional Review”, supported jointly by UNDP and UNEP
through the Poverty-Environment Initiative(PEI).
The Global South-South
Development Expo (GSSD Expo) is a UN system-wide global which took place in
Nairobi. The Expo confers particular recognition on those solutions that stand
out as global in scope, reach, and impact.
The award is in recognition of
the strong southern leadership from the Government Ministries and the positive
impact of its solution in Nepal as well as in other countries. During the Expo,
NPC’s Joint Secretary Gopi Nath Mainali received the award from H.E. Mr. John
W. Ashe, President, sixty-eighth session of the United Nations General
Assembly, Mr. Achim Steiner, Under-Secretary-General and Executive Director,
United Nations Environment Programme (UNEP), and Mr. Yiping Zhou, Director,
United Nations Office for South-South Cooperation (UNOSSC).
The code allows for the analysis
of climate programmes in relation to other priority indicators related to
poverty reduction and gender equality. These efforts have led to an allocation
of 10.34% of Nepal’s 2013-2014 budget for climate funding. He highlighted the
capacities available and needed in terms of knowledge and expertise for
poverty-environment mainstreaming, and the support that is required to improve
South-South cooperation.
The IPCC Fourth Assessment report clearly indicates that
anthropogenic activities have
accelerated the process of global climate change.
Increasing GHG emissions has contributed to the increase in the atmospheric
temperature, resulting in location-specific impacts. There have been changes in
rainfall patterns (high, low, and intensive rainfall) and seasons due to
climate change. These have direct and indirect impacts on water resources,
agriculture, forests and biodiversity, health, infrastructure development,
tourism, and livelihoods. Recognizing this, the international community is
actively engaged in minimizing the current effects and likely future adverse
impacts through effective implementation of the UNFCCC provisions. The impacts
of climate change are vivid in least developed, landlocked, and mountainous
countries. Nepal is also highly affected by climate change. It has been an
urgent necessity to address the issue of climate change by formulating a policy
and implementing relevant programmes to minimize the existing effects and
likely impacts in different ecological regions— from the Southern plains to the
middle hills and to the high Himalayan mountains in the north, and their
peoples, livelihoods, and ecosystems.
Past Efforts
As a Party to the Convention and being a Non-Annex I country,
Nepal prepared the Initial National Communication in 2004 (B.S. 2061)1 and shared with the Parties through the Convention Secretariat. Between
1996 and 2006, the then Ministry of Population and Environment (now the
Ministry of Environment) was the designated focal point to implement the
provisions of the UNFCCC. The then Ministry of Environment, Science and
Technology (now Ministry of Environment) was entrusted as the Designated
National Authority (DNA) to promote the development of projects for the Clean
Development Mechanism (CDM). A few public awareness raising programmes were
organised during this period. Similarly, the 2003 Sustainable Development
Agenda for Nepal and the 2001 Millennium Development Goals initiatives have
also addressed the issue of climate change to a certain extent. Between 2007
and 2009, in the process of implementing the Convention, Nepal has: (i)
prepared the action plan related to capacity building under the National
Capacity Needs Self Assessment Project in order to implement the Rio
Conventions (Climate Change, Desertification and Biological Diversity); (ii)
issued CDM project-approval processes and procedures to benefit from the
provisions of the Kyoto Protocol; (iii) started preparing the National
Adaptation Programme of Action (NAPA); (iv) started preparing the Second
National Communication (SNC); and (v) implemented a project on strengthening
capacity for managing climate change and the environment. Prior to the 15th Session of the Conference of the Parties (COP 15) to the UNFCCC, held in
Copenhagen in 2009, the Government of Nepal organized a Cabinet Meeting at
Kalapatthar, near the base camp of the Mount Everest, and issued the “Kalapatthar
Declaration.” In addition, the South Asian Regional Climate Change Conference “from
Kathmandu to Copenhagen” was held and a Memorandum of Understanding was signed
by 14 donors and development partners to support Nepal on climate change
activities. A status paper for COP 15 was also prepared. In July 2009, a
25-member Climate Change Council, including eight experts, was constituted
under the Chairmanship of Right Honorable Prime Minister. Similarly, the Right
Honorable Prime Minister, during COP 15, stressed the
need for addressing the impact of climate change in the
mountains, and that decisions and negotiations of the Convention must consider
this issue very seriously. From this, climate change appeared in 2009 as
national development agenda. In addition, the Interim Constitution of Nepal
(2007) and Three-Year Interim Plan (2008-2010) have also addressed the issue of
environmental management and climate change.
The Government of Nepal established the Climate Change
Management Division in the
Ministry of Environment (MoE) in the first quarter of
2010. The MoE prepared the National Adaptation Programme of Action, which was
endorsed by the Government on 28 September 2010. Local Adaptation Plans of
Action (LAPAs) are being prepared to implement adaptation programmes. In the
process of implementing the statement made by Right Honorable Prime Minister
during COP 15, the Mountain Alliance Initiative has been launched,
international expert consultations were organized, and relevant reports were
prepared. To coordinate climate change activities and implement collaborative
programmes, a multi-stakeholder Climate Change Initiatives Coordination
Committee (MCCICC) has been formed with representation from relevant ministries
and institutions, international and national nongovernment organizations,
academia, private sector, and donors. Similarly, with a policy to make the
country’s economy and infrastructure climate-resilient, the National Planning
Commission has initiated climate-resilient planning tools in the fiscal year
2010-11. It is evident that institutional, collaborative and programmatic
activities have been expanded to address the issue of climate change in recent
years. Efforts to mobilise funds to implement the programmes on climate change
are under way. In addition, private sector and civil society continued to
organize programmes and activities to raise public awareness and promote
adaptation and use of renewable energy.
Present Situation
Nepal has experienced an average maximum annual
temperature increase of 0.060C. This rateof increase is higher in the
mountains than in other regions. Despite having only 0.4 percent of the total
global population and being responsible for only 0.025 percent of total GHG emissions
in the world, Nepal will be affected disproportionately, especially from
increasing atmospheric temperature. Changes in the annual rainfall cycle,
intense rainfall and longer droughts have been observed. Similarly, both days
and nights are presently warmer. The number of days with 100 mm of heavy
rainfall is increasing. The timing and duration of rainfall is changing. As
glaciers recede from rapid snow and ice melting, glacier lakes are expanding. The
adverse impacts of climate change have been noticed in agriculture and food
security, water resources, forests and biodiversity, health, tourism and
infrastructures. Climate-induced disasters and other effects have caused
damages and losses to life, property, and livelihoods. Millions of Nepalese are
estimated to be at risk to climate change. In the past 90 years, a glacier in
the Sagarmatha region has receded 330 feet vertically. Because of glacier
melting, new glacier lakes have formed. Although there will be an increase in
river flows until 2030, this is projected to decrease significantly by the end
of this century. The problems arising due to climate change are increasing over
the years. Nepal has to implement adaptation programmes even if it is not being
responsible for climate change. Hence, Nepal has considered climate adaptation
as a national agenda and has taken several initiatives for implementing
different programmes for risk reduction in the recent years.
The main targets of the policies are:
§ Preparation of a National
strategy for carbon trade in order to benefit from the clean development
mechanism by 2012.
§ Reduce GHG emission
by promoting by the use of clean energy, such as hydro electricity, renewal and
alternative energies, and by increasing energy efficiency and encouraging the
use of green technology.
§ Adopt a low-carbon
development path by pursuing climate resilient socio-economic development.
§ Encouraging low
carbon emission by providing financial
and technical support and incentives.
§ Allocating at least
80 percent of the total budget from climate change fund directly to programme
implementation at the community level.
Deforestration, forest degradation and GHG
emission in Nepal
The GoN has been carrying out periodic forest inventories to determine
the total forest cover of the country. According to the Water and Energy
comission, the forest area of Nepal in 1964/65 was 45.3%. The land resource
mapping project (LRMP, 1986) report shows that above 42.7% landmass is covered
by forests. Different studies report shows that above 42.7% landmass is
occupied by forests. Different studies indicate that forests were lost at rate
of 1.7% per annum between year 1978 and 1994.
Beside deforestration, there are many indices of forest degradation in
Nepal. In response to this, the government has initiated several programmes to
increase the forest area. The forest condition seems to have increased after
handing over of forest as community forests, leaseholding forests, and
collaborative forests. Similarly observations have also been made in protected
area systems.
The National communication report submitted by ministry of Environment
in2004 shows that there have been 22895 Gigagram carbon emission annually
contributed by deforestration related activities in Nepal. This repot identifies
forest fire as one of the prime cause of degradation of forest in Nepal. The
drivers of forest deforetration and degradition identified by R-PP of Nepal
are: high dependency on forests and forest products (timber, firewood, and
other NTFPs), illegal harvest of forest products, unsustinable harvesting
practices, forest fire, encroachment, over grazing and infrastructure
development.The opportunity for reducing emissions from deforestation and
forest degradation opens up ways by
which Nepal can get benefit from Carbon trade. The REDD- Forestry and climate
change cell has been actively working on this.
Activities of the
REDD Readiness process in Nepal
Institutional framework of REDD
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Statement of Problems
There are very few studies about the effects and likely impacts of
climate change in Nepal. Scientific evaluations are yet to be carried out to
undrestand the type and degrees of impacts on specific geographical region and
development sector. Activities related to climate modeling and assessing the
ongoing effects and likely impacts of climate change in natural resources
including water resources and other economic sectors from the mountain and hill
regions to the plain of the south, have not been carried out due to inadequate
human and financial resources and lack of appropriate equopment.
The detailed impacts from climate change on agriculture, water
resources, forests and biodiversity, public health, disaster incidence, tourism
and other related sectors has yet to be assessed.
Although climate change has become an issue of global importance, there
is a lack of institutions which can examine climate change from the
perspectives of science and technology.
Rationality of study
Climate change is the global issue and
challenge at present. So we all know that the carbon emitted by the America is
melting the snow of MT Everest in Nepal. Developing countries are facing
problems by the sin of developed countries. so to compensate this loss by the
trade of carbon is the Rationality of this study.
Also, 39.6% of the land of Nepal is covered
by jungle or tress. we have a greater chance to Earn or compensate our self by
trading Carbon to the global market. so to ascertain the exact capacity of our
trees to absorb carbon and analyze it impact on national economy is the another
rationality of this study.
Also, Carbon trade is the new and emerging issue
or subject in Nepal. Very less research has been done in this topic in Nepal.
For that reason studying on this topic or doing research on this issue is the
rationality of this project.
Limitations of the study
Time
limitations:-
As this an academic research and is done
during the study period, a very limited time can be given to go in detail of
this research.
Resource
limitation:-
It is an individual research and all the data
collections, field survey, sampling, typing, editing is done by a single
person; which makes this research a little Limited.
And, quantitative data will be taken through
Primary data collection Method.
Research Methodology
·
Descriptive Method
Sources of Data
primary
sources:- Interview,
Secondary
sources:- Publications, journals, law, regulations, international treaties,
Methods used to collect Data
direct personal interview
secondary data collection from different
publications.
Data Processing Procedure
Data tabulation
Data classification
Comparison
Presentation of Data
Among the total area of Nepal i.e.- 1,47,181
sq km; 40% of the land is covered by forest and small plants, 21% of the land is covered by
Agricultural land, 14% of the land is covered by Grass land and the rest 18% of
the land is covered by rocks and snow land.
Pie-chart: 1
Table 2: Forest Carbon Stocks across different
physiographic and forest management regimes
|
Project
|
Physiographic
region |
Forest Management
regime |
carbon stocks
(MT/Ha) |
|
Terai Arc Landscape
|
Terai
|
State Forests
Community Forests Protected Area Systems |
206.15
240.00 274.58 |
|
NORAD Funded
REDD+ Pioloting BY ICIMOD, FECOFUN and ANSAB |
Inner Terai (chitwan)
Mid-hills(Gorkha) High Mountain( Dolakha) |
Community Forests Community Forests Community Forests |
257.39-298
166.97-221.77 168.27-231.35 |
|
REDD Piloting in
Collaborative Forest |
Terai(Bankhe-Mahara
collaborative Forest, Mahottari) |
Collaborative Forest
|
197.13
|
Source: Gurung, M.B.2010, ICIMOD et.al, 2011, Mandal
et.al.2012
Table 3: A summary of pledged and currently allocated amounts
from REDD Donor Partners
|
DONOR PARTNER
|
pledged amount
USD in thousand
|
currently allocated
amount
|
|
Japan government
|
360
|
2
|
|
USAID
|
1136.6
|
965
|
|
DFID/SDC
|
1467.5
|
491
|
|
Finland
|
780
|
360
|
Chart
2:
A summary of pledged and currently allocated amounts from REDD Donor Partners
Source:
www.mofsc-redd.gov.np (Mid Term
Report)
Based on the report provided by the REDD forest cell
Babarmahal Kathmandu Nepal here is a presentation of the various donor partners
who have provided various amounts and also have pledged to provide various amounts.
The Japan government have pledged to provide amount 360US$ and currently
allocated amount 2 thousand USD. Similarly, USAID has pledged to provide 1136.6
USD and currently allocated amount 965 USD. DFID/SDC has pledged to provide1467.5
USD and currently allocated amount 491 USD and Finland has pledged to provide
780 USD and currently allocated USD 360.
As
an initiative to implement REDD+ in Nepal, Readiness Preparation Proposal (RPP)
was developed after consulting with stakeholders at different levels. The R-PP
provides Nepal’s roadmap for developing and implementing the REDD Strategy. The
R-PP encompasses all readiness preparation activities planning for the year
2010-2013.
R-PP
envisages the readiness program into five components, which includes:
·
Organization and Consultation
·
Development of a National REDD Strategy
·
Development of reference Scenario
·
Design a Monitoring system
·
Design a Program Monitoring and
Evaluation Framework.
Table _: Commitment pledged by different donor agencies
during R-PP formulation for its implementation
|
SN
|
Agency
|
Amount (US$)
|
|
1
|
Government Of Nepal
|
335,000
|
|
2
|
FCPF, The World Bank
|
3,595,400
|
|
3
|
DFID/SDC (Multi-Stakeholder Forestry Program)
|
1,447,500
|
|
4
|
Government Of Finland (for FRA project)
|
780,000
|
|
5
|
Government of Japan
|
360,000
|
|
6
|
USAID (Hariyo Ban Program)
|
1,136,600
|
|
Total
|
7,654,500
|
|
Total
estimate for R-PP implementation was estimated US$7.654 Million, which was
supposed to be covered by GoN and various donor agencies. Table_ depicts the
earmarked budget by different donor agencies, including GoNI for Readiness
activites. The World Bank is the prime contributor of the Nepal’s REDD
readiness, followed by DFID/SDC. Nepalese government’s commitment is the least.
Case study
(The Carbon
Trade, BBC News, Thursday 20 April, 2006)
Nepal
is
set
to fetch income worth Rs.43.4 Million (USD 967,000) from two biogas projects,
which has been approved by the executive board of the clean development
mechanism (CDM) under the kyoto convention on climate change. The Nepal Biogas
Project (NBP) thus becomes the first project for carbon trading under the Clean
Development Mechanism of the Kyoto protocol on climate change. NBP can now sell
to developed countries the volume equivalent to carbon emissions it contains and
prevents from being released into the environment. By this Nepal will receive
yearly Rs. 40.34 Million (USD 568,000) from selling carbon. The alternative
energy Promotion Center (AEPC), under which NBP is running, submitted two
proposals for saving carbon from 9,708 and 9,688 biogas plants, respectively,
last year.
The
revenue received from carbon selling would be invested to install 25,000 plants
and such trading will further lift the standards of living among Rural people.
Previously, the world Bank agreed to purchase one million tons of green house
gas reduction under the Community Development Carbon Fund. It is also the first
large-scale carbon purchase made by the world bank.
So
far, Nepal has installed 150,000 biogas plants, while experts say up to 1.9
million would viable in the country. Biogas has been used for lighting and
cooking food. Biogas can be produced by the organic materials of the animals or
human beings where it is mixed with water and becomes carbon dioxide through
bacterial process.
Nepal
has continued to promote alternative energy projects, such as solar home
systems, wind energy, micro-hydro, biomass, and bio-gas projects. (World bank
agreement first carbon trading deal under Kyoto protocol, Nepal signs carbon
trading deal. Ohmy news, International global watch, 2006)
Table
2: Expenditure incurred over different fiscal years
|
Year
|
FCPF (USD)
WB- trust fund |
Government (NRS)
|
|
2011
|
88,025.80
|
3383470
|
|
2012
|
355,201.38
|
1176433.66
|
|
2013
|
1379164.7
|
150000
|
|
Total
|
1,822,391.88
|
4709903.66
|
The above table demonstrates the details of
expenditure incurred in different fiscal year since 2010. It includes various
expenditure from the government and World Bank.
CHAPTER: III
Conclusions and
Recommendation
A large number of developing countries including
Nepal consider REDD+ as a potential opportunity and visible source of
sustainable finance for investment in forest management, forest conservation,
and forest restoration to enhance multiple benefits of REDD+, including but not
limited to bio-diversity conservation, Watershed management, enhanced
resilients
